Once purchased as a way to diversify out of equities, commodities appear to have become an extension of other risk assets. However, this state of affairs may not be permanent.

The metals brokerage market is consolidating as regulatory costs rise, but the growth of Asian demand means this is still a valuable business for those with the right scale and organisation.

Airline companies used to be one of the only markets that hedged their exposure to oil. But with the steep rise in crude prices over the past five years, many more firms are following suit, and now sovereigns in emerging markets are doing the same.

Brazil produces 20% of the world’s ethanol, much of which goes towards fuelling the country’s cars. However, in recent years a combination of poor harvests, gasoline subsidies and the global financial crisis have seen investment in the industry grind to a halt. Will it be revived by the elimination of trade taxes on sugar cane ethanol in the US?

Emerging market growth is changing the strategy for the commodities business at the same time that tighter regulation is altering the relationship between banks, merchant traders and investment funds.